Cross Media Ownership

Outcomes 1.2 & 1.3:

The podcast should contain a ‘case-study’ on a company such as News Corporation that owns companies in different industries within the creative media sector. The case study should outline which companies they own and an explanation of how they function independently and as a whole. You should also explain how the industries develop relationships in order to work more effectively, increase profits and are successful (or unsuccessful).

From your podcast brief:

FACT:All media products are

owned by someone

What is Media Ownership?

50% BBC

Minority Stakeholder

Each of these producers has legal ownership of the particular media text they produce

This means that they profit from the distribution of the media text

They are also legally responsible for its content (complaints, regulation, legal action)

Legal Ownership

Historically, Media ownership was reasonably restricted

Media producers tended to stick to one channel of distribution (film, TV, radio, magazine)

The producers were smaller, specialist companies

Historical Media Ownership

video on next slide>>>

Murdoch

1980s – What changed?

Trade Union Power

1980’s – Wapping

1990 – Sky & ITV Auctions

Since the 1980s, the world economic climate has altered rapidly, with companies either merging or being taken over by other companies with similar interests

This happened in all industries and not just media

Bigger companies = bigger profits

1980s – What changed?

As well as the economic changes, the Media industry has changed rapidly in the last 20 years

Since the late 1980s, the technology available to distribute media texts has exploded

This has impacted upon the companies that produce these texts.

1980s onwards Media

To take advantage of the changing technology, Media companies have seen a significant amount of merger, takeover and buyout

IPC now owned by Time Warner (originally 2 companies, Time and Warner Brothers)

New Line Cinema now owned by Disney…

1980s onwards Media

As a result of the size of the companies which now operate, they are able to diversify into more than one Media area

IPC – Film/Magazine/News/TV

The term to describe this is CROSS MEDIA OWNERSHIP

Cross Media Ownership

1) Reduced Costs – big companies have more purchasing power (think Tesco) and produce products at a reduced cost.

◦ They can then either pass on this reduction to the consumer or increase their profit margins.

2) Synergy – they are able to pool the resources of the underlying companies to produce a better product at a reduced cost

Cross Media Ownership - Advantages

3) Wider distribution – the markets into which the media text can be distributed are increased

bigger audience = bigger profit

4) Business Security – the diversity of the products on offer increases the security of the business – one market fails, can focus on another – think Sony –

Cross Media Ownership - Advantages

3) Wider distribution – the markets into which the media text can be distributed are increased

bigger audience = bigger profit

4) Business Security – the diversity of the products on offer increases the security of the business – one market fails, can focus on another – think Sony – then think Blackberry!

Cross Media Ownership - Advantages

The Media is very persuasive – much of this persuasive power lies in the hands of fewer producers. Bias and partiality severely restricted

Campaign for Press Freedom: ‘When media are concentrated in the hands of powerful proprieters deep damage can be inflicted on democratic societies.’

Cross Media Ownership – Disadvantages – Media Power

The Lords Select Committee (2008):

‘It is possible for one voice to become too powerful’ …as a result any future mergers need to be carefully scrutinised by the government.

Many believe little has changed.

Cross Media Ownership – Disadvantages – Media Power

Cross Media Ownership – Disadvantages – Media Power

Privacy – massive databases of personal information

Flow of Information – information providers control selection, organisation and flow of information

Time Warner own 1,000,000,000 Google shares. Google own You Tube

Branding – media texts become part of a brand and lose their individual status

Cross Media Ownership – other disadvantages

There are both advantages and disadvantages of this global change

What is clear is that change is happening NOW

Cross Media OwnershipConclusion